(Yicai Global) Nov. 28 -- Chinese carmaker Anhui Jianghuai Automobile Group Co. [SHA:600418] (JAC) intends to establish its second joint venture with German auto giant Volkswagen to advance the multi-purpose vehicle (MPV) business, developing pickup trucks and electric commercial vehicles.
JAC signed a tripartite cooperative agreement with Volkswagen and its investment company in China yesterday. JAC and Volkswagen plan to establish a JV in Hefei in Anhui province, each holding a 50-percent stake in it, JAC said.
The JV will use both parties' commercial advantages to achieve development and sales goals in China and internationally. The JV is still undergoing a feasibility assessment since the companies have not finalized details such as the investment amount and business model.
The two groups signed an agreement in Berlin in Germany to establish a new-energy vehicle JV backed by USD909.09 million (CNY6 billion) in June.
As the largest carmaker in Europe, Volkswagen previously established two JVs in China -- Shanghai Volkswagen Co. in 1985 and FAW-Volkswagen Automobile Co. in 1991.